DOMESTIC LOW PRICE PASSENGER CAR History Of Indian Automobile Industry In India, millions use cars to help them

earn a livelihood, commute to workplaces, schools,

colleges, travel for pleasure .After independence, India adopted the ideals of socialism, from Soviet Union ,to make itself economically independent, resulting into imports being substituted by domestic products , and Foreign investment was discouraged . India adopted close door policy known as Licensing Raj, which shielded India from international competition. Restrictions on foreign collaborations meant that only limited technology was allowed to be imported in the automobile industry, mostly via collaborations in the form of 710 year technical collaborations. In 1953, based on the Tariff Commission recommendations, the government terminated the activities of the assemblers, that didnt have any manufacturing undertaking in India. In 1954, termed as the turning point of Indian Auto Industry, Companies like General Motors, Ford decided to leave Indian market. For three Decades the PAL and Hindustan Motors dominated the auto Industry. In 1980s a series of liberal policy changes took place, this change led to joint venture of 74% stake in Maruti Udyog Limited (MUL) with Suzuki of Japan. Licensing of Maruti Udyog Limited, as low cost, fuel efficient passenger car, the car was termed as Peoples Car and brand name was Maruti 800, the Indian Market grew between 15-17%. In 1985, the companies under the purview of Monopolies and Restrictive Trade Practises MRTP Act 1969 were allowed to undertake substantial expansion without any prior approvals,In 1998-99, Marutis turnover was 81.8 billion, with net profits of Rs 5.2 Billon.

CURRENT AND FUTURE TRENDS OF INDIA AUTO INDUSTRY

Today the automobile sector of India is the seventh largest in the world. In a year, the country manufactures about 2.6 million cars making up an identifiable chunk in the worlds annual production of about 73 million cars in a year. In the year 2009, India rose to be the fourth largest exporter of automobiles following Japan, South Korea and Thailand. In 2008 Tata Nano was introduced as a rear-engine, four-passenger city car built by Tata Motors, became the cheapest car in the world today. The car is expected to boost the Indian economy, create entrepreneurial-opportunities across India as well as expand the Indian car market by 65%. The car was envisioned by Ratan Tata, Chairman of the Tata Group and Tata Motors, who has described it as an eco-friendly "people's car" Quoted: Wikipedia.com. The competition among the car makers is very high and every car manufacturer is fighting to the top position in the Indian market. Small car is the latest trend in India and every car maker including General Motors, Fiat, Hyundai, Toyota Motor and Ford Motor are joining the small car race.Now with the fuel price touching the sky Indian car players are rolling ecofriendly cars like electric cars, hybrid cars, CNG and LPG versions. Honda rolled out the first hybrid car in India with its popular model Honda Civic hybrid and now Toyota will be soon introducing Toyota Prius hybrid in India. Quoted: http://www.carazoo.com/article/0809200801/Car-Trends-in-India